Powerica Share Price Suffers from Weaker-than-Expected Start to Trading, Lists at 7% Below Initial Public Offering Price

Powerica's Lacklustre Debut in Indian Stock Market

Powerica, an integrated power solutions provider, made a subdued entry into the Indian stock market on Thursday, April 2, with its share price listing at a 7% discount to the initial public offering (IPO) price of ₹395. The company's shares opened at ₹365 apiece on the National Stock Exchange (NSE) and ₹375 on the Bombay Stock Exchange (BSE), marking a 5% decline from the IPO price.

The IPO details reveal that Powerica raised ₹1,100 crore, with a price band of ₹375-₹395 per share, valuing the company at around ₹5,000 crore. The public issue comprises a fresh issue of shares worth ₹700 crore and an Offer for Sale (OFS) of ₹400 crore by promoters, as per the red herring prospectus (RHP). The OFS includes shares being sold by the Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust.

Proceeds from the fresh issue will primarily be used to reduce debt, with ₹525 crore allocated for this purpose, while the remaining funds will be used for general corporate needs. Powerica operates as an integrated power solutions provider, specialising in diesel generator sets (DG sets), medium-speed large generators (MSLG), and related services. The company also ventured into the wind power sector in 2008 as an independent power producer and has since expanded its capabilities to include engineering, procurement, and construction (EPC), as well as operation and maintenance services.

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The public issue is being managed by ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management.

Note: The IPO price band is ₹375-₹395 per share, valuing the company at around ₹5,000 crore.